In general, to change a mortgage from one bank to another to improve it, an operation called creditor subrogation is used, which consists of moving the loan to another financial one to reduce its interest rate.
There are entities, however, that offer another alternative: hire a new credit, with more attractive conditions, to cancel the one that is current.
According to the Bank comparator HelpmyCash.com, this option has more associated expenses, but it can be exited more than subrogation if good conditions are achieved.
From the comparator they remember that to subrogate a mortgage, it is necessary to pay only the appraisal (about 300 euros on average) and the commission for subrogation that the bank becomes abandoned, whose cost can be between 0% and 2% of the
Pending amount.
On the other hand, to hire a new loan and settle another one must pay the appraisal, the possible Commission for the Opening of the Signed Credit, the Expenditural Cancellation Expenses of the Old (about 1,000 euros) and its possible commission for anticipated amortization (between the
0% and 2% on pending capital).
So things, subrogation seems, a priori, a better way to change the bank’s mortgage.
However, according to HelpmyCash, the second option may be more convenient if better conditions are achieved and savings compensates for those highest expenses.
Therefore, his analysts advise comparing different offers of both types, to make numbers and opt for the one that comes out more.
In addition, there are entities with which it is not necessary to face most of the expenses associated with hiring a new mortgage to liquidate another one.
For example, with the service brings your fixed mortgage to OpenBankno, it is necessary to pay the opening fee or to pay the cost of registry cancellation or the appraisal (they are on behalf of the Bank).
The interest that can be achieved with this financial is from 1.30% in exchange for domiciling payroll and hiring your home insurance.
Before opting for one or another option, you have to analyze if you can really get a good saving by changing the bank’s mortgage.
According to HelpMyCash, the transfer will be worth more if the loan to be liquidated has an interest of 2% osuperior (euribor plus 1.50% if it is variable), since it is relatively easy to find banks that apply to less than 1.50% (euriber
More 1% if it is variable).
Likewise, the ideal thing is that a third of the mortgage period has not yet elapsed.
By the French amortization system (which is the one used by Spanish banks), most of interest are paid in the first third of the reimbursement period, so it is advisable to improve interest before overcoming that limit to be able to obtain a
Greater savings.
It is also important to look at the additional products that you have to hire to get a good interest.
And it is that it is possible that the savings obtained by improving the applied rate is less than intended for having to pay insurance premiums, account commissions or cards, etc.
Let’s say, for example, that a Discussion client between hiring the Freedom mortgage of Banco Mediolanum and the 100% online mortgage Variable type of Libbank to improve a mortgage loan having with another entity.
With the first entity, the interest would be from euribor more 1.05%, so its offer seems less attractive than that of Liberbank, whose type part of the euribor plus 0.99%.
Banco Mediolanum, however, only requests the payroll and hire your life insurance to achieve that interest.
Instead, Liberbank requires home payroll, hiring your home and life insurance, using one of your credit cards and keeping inverted a minimum equivalent to 10% of the mortgage amount in a background, so your offer is less attractive.
